TEA wants extension of moratorium on loan repayments

01 Aug '20

1 min read

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As the financial situation of Tiruppur knitwear garment units has not improved, they are not in a position to repay loans and interests, according to the Tiruppur Exporters’ Association (TEA), which recently said it has requested Prime Minister Narendra Modi to advice the Reserve Bank of India (RBI) to extend the moratorium for another six months—from September 1 to March 31, 2021.

In the first quarter of current fiscal, the country’s knitwear exports clocked ₹5,355 crore against ₹13,570 crore recorded in the corresponding period in the last fiscal, showing a negative growth of 60.54 per cent, TEA president Raja M Shanmugham said in a press release.

As micro, small and medium enterprises (MSMEs) whose credit exposure is more than ₹25 crore are deprived of receiving the Emergency Credit Line Fund now, Shanmugham said by denying the benefit, the intension of the government to help MSMEs during the pandemic would not be served and therefore, RBI should relax the condition.

Shanmugham has also sent a representation to Tamil Nadu chief minister Edappadi K Palaniswami requesting assistance for extension of the moratorium.

Fibre2Fashion News Desk (DS)

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